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Saving/Applying for a mortgage 2015/16/17/18/19

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    #7922
    givyjoe
    Registered Users Posts: 3,287 ✭✭✭givyjoe


    el Fenomeno wrote: »
    If you're buying a new build and Help-to-Buy is still available next year, the breakdown would be:

    5% of 325k = €16,250 from you
    5% of 325k = €16,250 from Help-To-Buy
    1% Stamp Duty - 325k minus VAT = €286,343.6 * 1% = €2,863.43
    Solicitors Prof Fees = Estimate €1500 - €2000 (best to estimate high)
    Other Fees = approx. €1,500

    So that'd be approx. €23,000 you'd need.

    If Help to Buy is gone, or you're not buying a new build, then it would be:

    10% of 325k = €32,500
    1% Stamp Duty = €3,250
    Solicitors Prof Fees = Estimate €1500 - €2000
    Other Fees = Approx. €1,500

    So that'd be close to €40k. I'm only familiar with the purchase process for new builds, so apologies if my estimates re: other fees is incorrect.



    They'd only need a mortgage on 90% of the 325k, which means they would need a combined salary of ~ €83.5k.

    Exemptions can be given up to 4.5 times salary, so if you got the full exemption of 4.5, then a combined salary of €65k would do.

    No idea what your repayment capacity is like - €1700 savings + €1200 rent would indicate a pretty good capacity, but no idea what other outgoings you have.

    On the subject of help to build, does anyone have any tips for easily finding them? I may be blind, but on daft (app) i cannot see any option to filter for new builds only, i.e. eligible for the help to buy scheme.


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    #7923
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    givyjoe wrote: »
    On the subject of help to build, does anyone have any tips for easily finding them? I may be blind, but on daft (app) i cannot see any option to filter for new builds only, i.e. eligible for the help to buy scheme.

    WWW.DAFT.IE/NEW-HOMES


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    #7924
    Phileas Frog
    Closed Accounts Posts: 946 ✭✭✭Phileas Frog


    ELM327 wrote: »
    2 years permanency is the standard. You can use consecutive contracts as part of the permanency but banks will not allow you draw down unless you are permanent afair

    2 years permanency is not the standard. Yes they will.


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    #7925
    scarepanda
    Registered Users Posts: 3,452 ✭✭✭scarepanda


    We've just been approved as FTB for 3.5x (salary+average regular bonuses) + deposit = purchase price.

    We are looking for a 90% LTV mortgage. We didn't think we'd get the full amount based on salary as we are a single income family with one dependent, but neither seemed to make any difference in our case.


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    #7926
    el Fenomeno
    Registered Users Posts: 3,213 ✭✭✭el Fenomeno


    ELM327 wrote: »
    2 years permanency is the standard.

    I haven't seen this anywhere. Most banks will just go by whatever the Salary Cert says. I'm still on my probation, but my Salary Cert from my employer said I was full time. Had no issue getting approval, and that was with the banks being aware that I was only with the company only 5 months.

    I'm sure if my Cert said that I was still on probation, I still would have gotten an offer but would have to prove permanency before drawing down.


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    #7927
    CaptivePortal
    Registered Users Posts: 55 ✭✭CaptivePortal


    hi all,

    long time lurker finally in position to buy. just wondering about peoples experiences placing offers.

    We placed on offer on a property yesterday to estate agent via email. We have not received any acknowledgement and when i rang their office today i was told the es was on another call and would call me back. this was 4 hours ago.

    My question is: should we have received acknowledgment of the offer?


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    #7928
    ELM327
    Registered Users Posts: 21,990 ✭✭✭✭ELM327


    Phileas Frog wrote: »
    2 years permanency is not the standard. Yes they will.
    Banks will allow you draw down if you are not permanent? Really?
    Show me that and I'll show you a bank that needs a new credit risk team.


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    #7929
    Phileas Frog
    Closed Accounts Posts: 946 ✭✭✭Phileas Frog


    ELM327 wrote: »
    Banks will allow you draw down if you are not permanent? Really?
    Show me that and I'll show you a bank that needs a new credit risk team.

    Certainly. Someone on a rolling contract, or someone that is self employed. An IT contractor or a Ryanair pilot for example


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    #7930
    DelBoy Trotter
    Registered Users Posts: 1,481 ✭✭✭DelBoy Trotter


    ELM327 wrote: »
    Banks will allow you draw down if you are not permanent? Really?
    Show me that and I'll show you a bank that needs a new credit risk team.

    2 years permanency is not standard. Once you are passed your probation (which is usually six months), it is enough for banks to give approval.

    There are also people who are on contract work (depending on the field they are working in) who can also get mortgages.

    You do not have to be permanent to get a mortgage, but it definitely helps!


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    #7931
    averagejoe123
    Registered Users Posts: 270 ✭✭averagejoe123


    CaptivePortal wrote: »
    hi all,

    long time lurker finally in position to buy. just wondering about peoples experiences placing offers.

    We placed on offer on a property yesterday to estate agent via email. We have not received any acknowledgement and when i rang their office today i was told the es was on another call and would call me back. this was 4 hours ago.

    My question is: should we have received acknowledgment of the offer?

    Absolutely they should have acknowledged your offer. This is poor form by the EA.


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    #7932
    ELM327
    Registered Users Posts: 21,990 ✭✭✭✭ELM327


    Phileas Frog wrote: »
    Certainly. Someone on a rolling contract, or someone that is self employed. An IT contractor or a Ryanair pilot for example
    Someone self employed needs to provide 2 years of accounts to show viability.


    Rolling contract is a negative in your review which the underwriters will perform.


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    #7933
    CaptivePortal
    Registered Users Posts: 55 ✭✭CaptivePortal


    averagejoe123 wrote: »
    Absolutely they should have acknowledged your offer. This is poor form by the EA.

    Thanks, they actually called not long after posting!


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    #7934
    Phileas Frog
    Closed Accounts Posts: 946 ✭✭✭Phileas Frog


    ELM327 wrote: »
    Someone self employed needs to provide 2 years of accounts to show viability.

    No they don't, umbrella company directors for example are self employed but don't need to provide 2 years of accounts.

    ELM327 wrote: »
    Rolling contract is a negative in your review which the underwriters will perform.

    Yes, but it doesn't prevent them drawing down which was your original point. Th eonly negative is that it's the average of 3 years P60s which is used as the 3.5 x calculation.


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    #7935
    ELM327
    Registered Users Posts: 21,990 ✭✭✭✭ELM327


    Phileas Frog wrote: »
    No they don't, umbrella company directors for example are self employed but don't need to provide 2 years of accounts.




    Yes, but it doesn't prevent them drawing down which was your original point. Th eonly negative is that it's the average of 3 years P60s which is used as the 3.5 x calculation.
    As a self employed director of a company my partner was advised she needed 2 years of accounts to prove income.


    It's all very well and good posting on the internet that "they don't" but in the real world we were told we needed it.


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    #7936
    loriexxx
    Registered Users Posts: 101 ✭✭loriexxx


    Do ulster bank request up to date payslips and bank statements before draw down if it is still within the 6 month period from loan offer


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    #7937
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    ELM327 wrote: »
    As a self employed director of a company my partner was advised she needed 2 years of accounts to prove income.


    It's all very well and good posting on the internet that "they don't" but in the real world we were told we needed it.

    You're giving a lot of advice based on your specific treatment.

    I lot of what you have said is not true in our case. For example our purchase price was >4.5 times our income but we borrowed using a 3.8 LTI exemption!


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    #7938
    derekbro
    Registered Users Posts: 154 ✭✭derekbro


    Phileas Frog wrote: »
    No they don't, umbrella company directors for example are self employed but don't need to provide 2 years of accounts.

    I am and I did have to provide 2 years of accounts for all banks.


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    #7939
    drinkingwater
    Registered Users Posts: 128 ✭✭drinkingwater


    loriexxx wrote: »
    Do ulster bank request up to date payslips and bank statements before draw down if it is still within the 6 month period from loan offer

    They didn't ask for anything from us, draw down last Friday with UB


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    #7940
    c6ysaphjvqw41k
    Closed Accounts Posts: 466 ✭✭c6ysaphjvqw41k


    We applied for a mortgage and we were informed by the lender that we got approval in principle and they would be sending out a letter today so we could go looking for houses.

    We only needed €150,000 as we have the rest in savings. Will the approval in principle letter state the amount that we are approved for? It will be the first one we applied for so I'm not sure what to expect. If an estate agent asks for proof of funds when we place a bid, I'm worried it might look like we only have €150,000 to spend. I also don't want to show them bank statements because I don't' want them knowing our max budget. Not sure the procedure here.

    Other question I had is regarding bids. There's a few houses up that are €10-€15k over our budget. Is there any point in looking at these houses and putting in an offer on them as long as there are no other bids yet? Or would it be a waste of time?


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    #7941
    Phileas Frog
    Closed Accounts Posts: 946 ✭✭✭Phileas Frog


    derekbro wrote: »
    I am and I did have to provide 2 years of accounts for all banks.

    As am I, and I didn't for either EBS or KBC.


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    #7942
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note

    threads merged


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    #7943
    hanaimai
    Registered Users Posts: 207 ✭✭hanaimai


    Valeria Rich Somehow wrote: »
    We applied for a mortgage and we were informed by the lender that we got approval in principle and they would be sending out a letter today so we could go looking for houses.

    We only needed €150,000 as we have the rest in savings. Will the approval in principle letter state the amount that we are approved for? It will be the first one we applied for so I'm not sure what to expect. If an estate agent asks for proof of funds when we place a bid, I'm worried it might look like we only have €150,000 to spend. I also don't want to show them bank statements because I don't' want them knowing our max budget. Not sure the procedure here.

    Other question I had is regarding bids. There's a few houses up that are €10-€15k over our budget. Is there any point in looking at these houses and putting in an offer on them as long as there are no other bids yet? Or would it be a waste of time?

    Yes your AIP letter will state how much you've been approved for. If the estate agent asks for proof just send them the letter with the amount blacked out. We were never asked ourselves for proof of funds but that was advice I saw on here from other people when we were looking.


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    #7944
    c6ysaphjvqw41k
    Closed Accounts Posts: 466 ✭✭c6ysaphjvqw41k


    hanaimai wrote: »
    Yes your AIP letter will state how much you've been approved for. If the estate agent asks for proof just send them the letter with the amount blacked out. We were never asked ourselves for proof of funds but that was advice I saw on here from other people when we were looking.

    Makes sense, thanks for the advice. We will do that. I kind of thought they might not ask because most people I know were never asked but I know they could ask.


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    #7945
    Glen_Quagmire
    Registered Users Posts: 1,137 ✭✭✭Glen_Quagmire


    Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?


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    #7946
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    Glen_Quagmire wrote: »
    Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?

    They might


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    #7947
    Interested Observer
    Registered Users Posts: 13,106 ✭✭✭✭Interested Observer


    Valeria Rich Somehow wrote: »
    Makes sense, thanks for the advice. We will do that. I kind of thought they might not ask because most people I know were never asked but I know they could ask.

    We just got our broker to send a letter saying we could afford the house and that was it. You could possibly ask the bank for similar.


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    #7948
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    Glen_Quagmire wrote: »
    Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?

    If they will then it won't be for 8-12 months. A lot of the loan book is forward funded.


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    #7949
    averagejoe123
    Registered Users Posts: 270 ✭✭averagejoe123


    Glen_Quagmire wrote: »
    Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?

    I'm not sure why people are making such a song and dance about AIBs rates when there is already better value in the market.

    The 10 year rate is currently the best available so perhaps others might react to this.


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    #7950
    Misssally
    Registered Users Posts: 15 ✭Misssally


    Question re deposit, second time buyer & most of our deposit is tied up in our current home. Do we have to finalise sale & move out etc before we put an offer on another house or is there any way to bridge the deposit? We’ve small kids so want to avoid having to move in with family if possible so any advice welcome!


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    #7951
    averagejoe123
    Registered Users Posts: 270 ✭✭averagejoe123


    Misssally wrote: »
    Question re deposit, second time buyer & most of our deposit is tied up in our current home. Do we have to finalise sale & move out etc before we put an offer on another house or is there any way to bridge the deposit? We’ve small kids so want to avoid having to move in with family if possible so any advice welcome!

    Whilst it is possible to buy and sell on the same day it is very difficult. I would be planning to have a week or two between buying and selling.

    You don't need to have your own sale finalised before bidding but most EAs will want you to be at least sale agreed on your own house before considering your offer.


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